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Question:

Is it true or false that "a server operating system cannot be installed in a hypervisor running on a desktop operating system"?

A False
Explaination

The statement is false. There are no constraints as long as the Hypervisor can supply the resources (CPU, Memory,...) required to execute the OS loaded on the virtual machine. Regardless of the host OS, Windows 10, Windows Server, Linux, and other operating systems can all be run virtually.